Are there safe havens in a volatile market? Two investment strategists say yes. Jeff Krumpelman, Sr. Portfolio Manager at Fifth Third Asset Management, and George Foley, First Vice President and Portfolio Manager at Glenmede Large Cap Value Fund, offered “Power Lunch” viewers their sector and stock picks.
Krumpelman told CNBC’s Sue Herera that he would avoid homebuilders and firms with direct involvement in subprime lending. Instead, he recommends “high-quality” growth stocks, especially those with dividend payouts--a show of confidence in the company’s strength. He likes Altria, Charles Schwab and Microchip Technology.
Foley agreed about the significance of dividend payouts. He sees a "note of caution" in oil's potential to dent consumer discretionary spending, but still recommends consumer staples, and foresees a lot of capex spending in telecom and commodities. Foley seconds Krumpelman on Altria, adding AT&T and Lockheed Martin as other good prospects.